Powell City Council grants extension for GFO sale

Posted 1/12/21

The Powell City Council has extended a deadline on a deal that will allow Gluten Free Oats to buy out the city’s interest in the company’s facilities.

In July, the city agreed to sell …

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Powell City Council grants extension for GFO sale

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The Powell City Council has extended a deadline on a deal that will allow Gluten Free Oats to buy out the city’s interest in the company’s facilities.

In July, the city agreed to sell the East Washington Street property and facilities to Gluten Free Oats for $742,500. The agreement was set to expire on Dec. 31 and was contingent on GFO owner and CEO Dale Tenhulzen getting financing.

Since 2010, the state and city have provided the company over $1.7 million in grants that went toward the purchase of the land, as well as developments. The grants were intended to be loans, which would be paid back over time through leases the company had with the city for the use of the property and facilities, which the city owned.

In May of last year, as Tenhulzen acquired GFO from the Smith family, company representatives began discussions with the council about buying the city out. The council

approved the $742,500 agreement in July, contingent on the business owners closing on the sale by the end of the year.

At its Dec. 7 meeting, the council unanimously passed a resolution giving Mayor John Wetzel authority to sign the warranty deed and statement of consideration at closing, once the funding was received.

Then at its Jan. 4 regular meeting, City Administrator Zack Thorington requested an extension until Jan. 31, which the council unanimously approved.

Jonathan Roth with Bedrock Group, LLC, which is representing GFO in the sale, said Jan. 6 it was a technical issue related to the New Year holiday. He said it would be resolved last week. Roth wasn’t at the meeting, and at the time Thorington didn’t have any details of what caused the delay.

He said he had expected to announce the sale had been completed the prior week, but there was a “hiccup” with the title company, who could not cut a check to the city, as it had not received the funds from GFO.

Thorington said the consulting company working with GFO’s bank indicated funds had been sent to the title company.

Councilor Zane Logan asked if it might be a technicality on the wire transfer. Thorington said it might have been it, but he couldn’t be certain.

“Hopefully it’s over in the next day or two, but I don’t know,” Thorington said.

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